construction

Commercial developers wait for Brexit clouds to clear

Growth in the construction industry slowed last month for the first time since September.

Uncertainty over Brexit and the future trading relationship between Britain and the European Union was blamed for moderate fall in commercial building work, continuing a downward trend that began in July.

The slowdown was outlined in the purchasing managers’ index for construction, a closely watched survey of the health of the sector. The industry makes up about only 7 per cent of the economy, but developers’ investment decisions are an indicator of how optimistic businesses are about Britain’s confidence and prospects.

The survey’s measure slipped to a balance of 52.2 in December, after hitting a five-month high of 53.1 in November. Any reading above 50 indicates growth, while a figure below represents contraction.

A busy month for Construction and Property in the UK

The Self-Build Zone and Build Zone teams have had a jam-packed October, visiting shows across the country. We have had representatives present at some of our favourite shows this month and would like to encourage our readers to remember to add them to your diary next year!

We kicked October off with UK Construction Week, UK Construction Week is the UK’s largest construction trade event. It took place at the Birmingham NEC from 10 -12th October 2017. This event unites over 650 exhibitors with an audience of over 35,000 trade visitors.

UK Construction Week celebrates an exciting and dynamic industry, offering visitors and exhibitors a place to network, debate and discover innovation.

Here at Build-Zone, we are well known in the construction industry for our 10 Year Structural Warranty, we are experienced in underwriting warranties for all types of developments, from single unit self-builds to large residential or commercial developments.

With years of experience, Build-Zone understand the importance of providing the right level of support throughout the build process, that’s why Build-Zone also provide Construction Insurance, which can provide comprehensive cover on an Annual OR project-by-project basis.

Build-Zone Construction Insurance can include Contractors All Risk (CAR) for New Works, Existing Structures being worked on (Terms, Conditions & Limitations may apply), Hired Plant, Own Plant, Public Liability & Employers Liability cover, Non-Negligent Damage, and Terrorism if required.

We have a range of policies available which can provide cover for any size development from a simple single unit New Build/Renovation/Conversion/ Extension through to large Residential, commercial and mixed-use developments.

Can 200,000 starter homes be built by 2020?

The claim: The government will not be able to achieve the manifesto commitment to build 200,000 starter homes by 2020.

The verdict: It currently seems unlikely because money has only been set aside for 60,000 starter homes. Also, the current plan is for 22% of new developments to be starter homes, which would mean one million suitable homes being built by 2020 – that would be a significant acceleration of house building.

The government announced on Tuesday that it had given the go-ahead for the construction of thousands of starter homes.

Starter homes are new homes built for first-time buyers between 23 and 40 years old, sold at least 20% below market value. The maximum price after the discount has been applied is £250,000 outside London and £450,000 in the capital.

The Conservatives made a commitment in their manifesto for the 2015 general election to build 200,000 starter homes – the pledge to do so by 2020 was repeated in the call for expressions of interest in building starter homes that was released last March.

Construction growth continues to be fuelled by house building

Stable growth for the construction industry is shown by figures from the Office for National Statistics as output rises 4.1% over the year to Q3 2013.

Housebuilding continues to be the main source of fuel for much of the growth– private housebuilding rose by 15.6% in the same period. This growth in activity is assisted by the Help to Buy scheme which enables homebuyers to obtain a new home by only putting down a 5% deposit.

Julia Evans, chief executive of the National Federation of Builders, said:

“Help to Buy has given a much needed shot in the arm to the housebuilding sector. Activity is increasing, but we started from a low base. We are still building around 40% fewer homes than we were building in 2008; nowhere near enough to meet demand. We need to ensure that the industry is on a sustainable footing before the three-year Help to Buy scheme ends so we don’t see that level of decline again.”

Output in the repair and maintenance sector fell by 0.6%, but despite this drop has remained fairly steady. In contrast to the Green Deal which is struggling to catch the public’s imagination, The Energy Companies Obligation (ECO) continues to generate a significant amount of retrofit work with almost 50,000 installations in August. Cutting funding for ECO would reduce available work at a time of rising costs and further depress activity in this sector.

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Build-Zone is a trading style of Sennocke International Insurance Services Limited of 6 Pembroke Road, Sevenoaks, Kent, TN13 1XR, Sennocke International Insurance Services Limited is an independent insurance broker who is authorised and regulated by the Financial Conduct Authority (FCA). We are permitted to arrange, advise on, deal as an agent of insurers, assist in claimshandling with respect to non-investment insurance policies. Our firm reference number is 309040.